Reykjavík Energy Completes Green Bond Auction Successfully
Reykjavík Energy Completes Green Bond Auction
Reykjavík Energy has successfully concluded a green bond auction featuring the bond classes OR020934 GB, OR180255 GB, and a new bond class OR280845 GB. This accomplishment reinforces Reykjavík Energy's commitment to sustainability and investment in green projects.
Details of Bond Classes
The class OR020934 GB offers fixed indexed interest with semi-annual payments. The bond is set to mature on a specific date in September 2034. To date, bonds in this category have been issued with a nominal value of ISK 27,607 million.
Performance of OR020934 GB
This series attracted significant investor interest, garnering bids totaling ISK 800 million nominal value at competitive yields ranging from 4.41% to 4.54%. Ultimately, Reykjavík Energy accepted bids amounting to ISK 500 million at an average yield of 4.48%.
New Green Bond Class OR280845 GB
An additional green bond class, OR280845 GB, was introduced during this auction. This bond also features fixed indexed interest and semi-annual payments, set to mature in August 2045, and carries a fixed interest rate of 3.70%. Importantly, this bond will be redeemable after a term of 13 years.
Investor Interest in OR280845 GB
The OR280845 GB series attracted a robust interest as reflected in the bids, which totaled ISK 2,250 million nominal value. The yields for this bond ranged between 3.72% and 4.08%. Reykjavík Energy accepted bids amounting to ISK 2,050 million at a yield of 4.05%.
Class OR180255 GB Overview
The OR180255 GB bond also carries fixed indexed interest, complemented by semi-annual payments, and has a final maturity date set for February 2055. Historically, this bond class has seen a nominal value of ISK 34,246 million issued.
Bid Outcomes for OR180255 GB
In this auction, the series attracted bids of ISK 1,290 million nominal value with yields ranging from 3.52% to 3.60%. Reykjavík Energy accepted bids totaling ISK 1,000 million at a competitive yield of 3.54%.
Role of Fossar Investment Bank
Fossar Investment Bank played a crucial role in the issuance and sale of these bonds, ensuring their successful admission to trading on the Nasdaq market in Iceland within the sustainable bonds sector. Their expertise undoubtedly contributed to the favorable outcomes achieved.
Contact Information
For further information regarding the auction and the bonds, interested parties may contact:
Snorri Hafsteinn Þorkelsson, CFO, tel: +354 516 6100, email: snorri.hafsteinn.thorkelsson@or.is
Matei Manolescu, Fossar Investment Bank, phone: +354 522 4008, email: matei.manolescu@fossar.is
Frequently Asked Questions
What was the total nominal value of bids attracted by the bonds?
The bonds attracted a total nominal value of ISK 4,540 million across different classes during the auction.
What are the maturity dates for the different bond classes?
The OR020934 GB matures on September 2, 2034, OR180255 GB matures on February 18, 2055, and OR280845 GB matures on August 28, 2045.
What are the fixed interest rates offered by the newly introduced bond class?
The OR280845 GB carries a fixed interest rate of 3.70% with semi-annual payments.
Who managed the bond issuance and sales process?
The issuance and sale of the bonds were managed by Fossar Investment Bank, ensuring smooth operations and market integration.
How does this auction contribute to Reykjavík Energy's sustainability goals?
The successful auction and issuance of green bonds aid Reykjavík Energy's efforts to fund and promote sustainable energy projects, reflecting their commitment to environmental initiatives.
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